The analyst also added Bank of America -- the second
largest U.S. bank by assets -- to its Americas buy list and
said the bank offers safety from a common equity raise relative
to Wachovia Corp WB.N and Citigroup Inc (C.N: Cotización).

Ramsden said Bank of America's pre-provision earnings is
rising while the rest of the industry is reporting declines,
and net interest margin expansion, helped by the core retail
business segment, should continue to benefit the company.

Bank of America's pre-provision earnings rose 2 percent in
the second quarter from a year ago, compared with an 8 percent
decline for the industry, Ramsden said.

Although capital remains thin for the bank, it could still
improve its tier 1 capital ratio -- a measure of financial
strength based on capital available against perceived risk --
to 8 percent from its current 7.5 percent through earnings,
preferred stock issuance, and partial monetization of the China
Construction Bank (601939.SS: Cotización) stake, Ramsden added.

"A common dividend cut provides a back-up plan if credit is
worse than we forecast," the analyst wrote. He has a price
target of $40 on the stock.

Shares of Charlotte, North Carolina-based Bank of America
were up about 5 percent at $32.60 before the bell. They closed
at $31.14 Friday on the New York Stock Exchange.
(Reporting by Anurag Kotoky in Bangalore; Editing by Himani
Sarkar)